26 Aug 2020 11:00am to 12:00pm

Impacts of LNG export and market power on Australian electricity market dynamics, 2016-2019

The University of Melbourne
Dr Dylan McConnell is an energy systems research fellow at the University of Melbourne Climate & Energy College and researcher at the multi-institutional Energy Transition Hub. He has extensive experience...

The price impacts of supply side shocks in energy markets can be enhanced in concentrated markets through the exercise of market power, and can be acute in markets undergoing transition due to imperatives such as decarbonisation. In a recent book chapter,  we explore how gas supply constraints associated with commencement of LNG exports in 2015 together with a progressive market concentration due to closure of old coal plant resulted in a ‘perfect storm’ that contributed to a doubling of wholesale electricity prices. This seminar presents the finding of this work, and  highlights the disproportionate impact of gas prices, which has been exacerbated through the exercise of market power, especially via the practise of ‘shadow pricing’.



CORE Partners